Ready to buy a home in the Pine Tree State?
With its four distinct seasons and a lifestyle steeped in New England charm, Maine offers natural beauty alongside a slower pace of living. Your dream home could be a cozy single-family house in Wells or a stylish condo for sale in York.
Whether you’re a first-time homebuyer or new to the Maine housing market, this guide will teach you everything you need to know. We’ve broken down the entire home-buying process into 13 actionable steps.
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Key Takeaways:
- Get Pre-Approved ASAP – In a seller’s market like Maine, a pre-approval letter helps you stand out.
- Save Thousands with Assistance Programs: Programs like “MaineHousing’s First Home Loan Program” offer low fixed interest rates, little or no down payment options, and down payment assistance grants that can save you thousands.
- Don’t Skip Maine-Specific Inspections: Radon testing is essential given the state’s high radon levels. Septic and well inspections are critical for rural properties, and heating systems should be checked carefully to ensure they can handle Maine’s long winters.
- Ask for Credits, Not Repairs: If the inspection has issues, ask the seller for credit at closing. This allows you to hire your own contractors and prevent closing delays.
- Protect Your Investment and Your Wallet: Remember to get flood insurance, as standard policies don’t cover it. Don’t forget to file for the Homestead Exemption to save up to $25,000 on your home’s taxable value.
How to Buy a Home for the First Time in Maine: 13 Steps!
These steps to buying a house in Maine will walk you through everything, from assessing finances and budgeting for a down payment to choosing the right mortgage. These 13 steps make the Maine real estate process clear, simple, and manageable.
Step 1: Assess Your Finance
As a Maine first time home buyer, the two factors that should matter the most to you are your credit score and Debt-to-Income (DTI) ratio. Additionally, you must also consider how much you can afford for a down payment, a monthly mortgage, taxes, and insurance.
What Is Your Credit Score?
A credit score is a three-digit number that indicates your creditworthiness to lenders. The minimum credit score to buy a house in Maine depends on the type of mortgage you get.
Minimum and Ideal Credit Scores by Loan Type
| Loan Type | Minimum Score | Ideal Score |
|---|---|---|
| FHA | 580 (3.5% down) | 580+ |
| Conventional | 620 | 740+ for best rates |
| VA | No minimum | 620+ |
| USDA | No minimum | 640+ |
Portfolio mortgage loans are easy to qualify for. In Maine, the credit score needed to buy a house starts at around 580. VA loans are available only to veterans and active-duty service members, and require a score of 620. FHA loans also accept scores as low as 580. They are good for buyers with lower credit scores looking for houses in Maine.
When purchasing property in Maine, you can check your credit score using several reliable methods. Most of them are free and will not harm your score:
- Annual Credit Reports: Federal law entitles you to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed through the official, government-authorized website, AnnualCreditReport.com.
- Credit Monitoring Services: Many banks, credit card issuers, and financial service apps provide complimentary and regular access to the FICO score. This is a convenient way to track your credit health over time.
Knowing how to repair your credit score is important to get better mortgage rates. If you’re a Maine first time home buyer, here’s what you need to do:
- Pay down credit card balances and make all payments on time.
- Avoid opening multiple new accounts quickly.
- Consider becoming an authorized user on a family member’s account with a good history.
- Monitor your score regularly to track progress.
How to Calculate Your Monthly Mortgage Payment in Maine?
As a first time home buyer in Maine, knowing your average mortgage payment helps you plan your budget. Your total payment includes 4 key components, often called PITI:
- Principal and Interest: This is a major chunk of your payment, covering the amount you borrowed (principal) and the cost of borrowing (interest). It’s determined by your loan amount, interest rate, and loan term.
- Taxes: Maine property taxes are based on your home’s assessed value. The lender holds these funds in an escrow account and pays the tax on your behalf.
- Insurance: Lenders require you to have homeowners’ insurance to protect the property. The annual premium is usually divided by 12 and added to your monthly payment, also managed through the escrow account.
Apart from PITI, your monthly payment may also include Private Mortgage Insurance if your down payment is less than 20%, and HOA fees.
Know How Much Home Can You Afford in Maine Get an instant monthly payment estimate with Houzeo’s free Maine mortgage calculator.
What Is a Debt-to-Income (DTI) Ratio?
Your debt-to-income ratio shows how much of your monthly income goes toward debt payments, including mortgage, car loans, credit cards, and student loans. To calculate it, add all monthly debts and divide the total by your gross pre-tax monthly income.
A high DTI can prevent you from qualifying for a mortgage, as it shows that you struggle to manage your debt. For the best mortgage rates and a higher likelihood of mortgage approval in Maine, aim for a DTI ratio of 36% or lower.
💡You can still qualify for a loan in Maine despite a high DTI if you have compensating factors like a strong credit history, significant cash reserves or savings, stable long-term employment, etc.
Recommended DTI Ratios by Loan Type
| Loan Type | Recommended DTI Ratio | With Compensating Factors |
|---|---|---|
| Conventional | 36% back-end | 45-50% |
| FHA | 43% back-end | Up to 50% |
| VA | 41% | Can exceed 50% with the residual income test |
| USDA | 41% back-end | 44% with strong credit |
To improve your DTI ratio for a mortgage, you can either reduce your monthly debts or increase your verifiable income.
- Pay Down Debt: Use a tax refund or bonus to clear smaller loans, or consolidate multiple debts into a single loan with a lower monthly payment.
- Increase Verifiable Income: Ask for a raise, take on part-time work, or start a side business. Include all consistent income sources on your application, such as bonuses or commissions, but remember that lenders require a two-year history for secondary income.
- Adjust Your Housing Budget: A larger down payment reduces your loan amount and your monthly mortgage payment. You can also consider a lower home purchase price to keep your future housing costs down.
Step 2: Budget for Your Down Payment and Closing Costs
You should set aside money for the down payment and closing costs. The Maine first time home buyers program helps to make homeownership accessible and affordable.
How Much Down Payment Does a Maine First Time Home Buyer Need?
Typically, the down payment on a house for a first-time homebuyer in Maine usually ranges from 3% to 20% of the property’s price. However, it can vary based on the loan type. FHA loans require just 3.5% down, while some conventional loans allow a 3% down payment.
To help with these upfront costs, there are many state and local down payment assistance programs in Maine. They provide grants or loans to cover these expenses.
👉 First-Time Home Buyer Programs in Maine: Find out which is the #1 downpayment assistance program in the Pine Tree State.
How to Estimate Closing Costs in Maine?
Closing costs are fees and expenses paid at closing beyond your down payment. Typically, buyer closing costs in Maine usually range from 2% to 5% of the home’s price. So, for a $450,000 home, buyers might pay $94,108 to $100,858.
These fees cover lender charges, appraisals, inspections, title insurance, taxes, agent commissions, and recording fees when buying a property in Maine.
Step 3: Get Pre-Approved for a Mortgage
Secure your financing early by getting pre-approved for a mortgage as a first time homebuyer in Maine. This step helps you understand your budget and strengthens your offer when buying a house.
How to Get Pre-approved as a First Time Home Buyer in Maine?
You need to follow these steps to get pre-approved when buying a house in Maine:
- Gather Financial Documents: Provide proof of income (recent pay stubs and W-2s), tax returns (last two years), asset statements, debt information, and a government-issued ID.
- Choose a Lender and Apply: Compare lenders in Maine and submit a mortgage application to get the best rates and terms.
- Receive Pre-Approval Letter: The lender verifies your info and issues a letter stating your approved loan amount, usually valid for 30–90 days.
A mortgage preapproval turns you from a casual house hunter to a serious buyer in Maine, as it:
- Strengthens Your Offer: 86% of the sellers prefer buyers with a pre-approved mortgage. For the strongest position, ask for a fully underwritten pre-approval, where the lender has already verified all your documents.
- Defines Your Budget: It clarifies exactly how much you can afford, allowing you to focus your home search on a realistic price range.
- Speeds Up Closing: With much of the financial vetting already completed, the mortgage process is streamlined once your offer on a home is accepted.
Yes, you can get pre-approved and even buy a home with bad credit in Maine. However, your loan options may be limited. You can also expect higher interest rates with poor credit.
Step 4: Choose the Right Mortgage
As a Maine first time homebuyer, assess your finances and select a loan that fits your budget and qualifies you for available programs.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min Credit Score | 620 | 580 (500 w/10% down) | No minimum | 640 |
| Min Down Payment | 5% to 20% | 3.5% | 0% | 0% |
| Max DTI | 45% to 50% | 43% to 50% | 41%+ | 41% to 44% |
| Mortgage Insurance | PMI if <20% | Always | None | Always |
| Loan Limits | $766,550+ | $498,257 to $766,550 | $766,550+ | Varies |
| Property Eligibility Criteria | Few | Must meet FHA standards | Must meet VA standards | Rural/suburban areas only |
Step 5: Decide Where to Buy a Home in Maine
Deciding where to buy is one of the most important steps for a Maine first time home buyer. Consider factors like local housing markets, popular neighborhoods, cost of living, and amenities to help you find the best places to live in Maine.
Why Now Is the Time to Buy in Maine
The Maine housing market is a balanced market. You now have more negotiating power and a wider selection of properties to choose from:
- Prices Have Dropped: The median home price is seeing a drop, with rates going from $425,000 to less than $400,000 in a span of three months. This allows you to set your budget with more ease.
- New Listings: Maine has seen more than 1000 newly listed houses, which is 21.7% more than the previous year. This gives buyers fresher options to choose from.
- Sellers are Negotiating: 78.3% of homes in Maine were sold at their actual or below the listing price. This shows buyers have the negotiating powers and feel their purchase is valuable.
These trends show that now is the best time to buy a house in Maine. According to Mauricio Umansky, founder of The Agency, the current market provides “great opportunities for buyers to be aggressive and write strong offers.”
Popular Areas for Different Buyer Types
With the market now in your favor, you can be more selective about where you buy. Use this advantage to find a neighborhood that matches your priorities, whether it’s schools, commute, or lifestyle.
Best Areas for Families: Neighborhoods like Yarmouth, Falmouth, and Cape Elizabeth are top choices for their excellent schools and family-friendly parks. If you envision life in a community designed for family connection, explore homes for sale in Portland. Properties with access to top-tier schools and parks typically cost about $300,000.
Best Areas for Retirees: For those seeking an active retirement, towns like Belfast, Rockland, and Brunswick offer low-maintenance living and vibrant social activities. If you are interested in a community renowned for its active lifestyle, consider homes for sale in Bar Harbor, where prices generally range from $250,000 to $450,000.
Best Areas for Young Adults: Cities like Bangor and Biddeford offer thriving job markets and vibrant social scenes. If a cosmopolitan lifestyle is what you seek, browse the latest South Portland condos for sale, where you can find modern apartments starting at just $300,000.
Consider the Cost of Living When Choosing a Location
When looking for the best place to buy a house in Maine, consider the overall cost of living, as lower home prices can be offset by higher property taxes, heating costs, or insurance.
- High-Cost Areas: Coastal towns like Portland, Cape Elizabeth, and Falmouth are 10–18% above the national average, driven by higher housing demand and property values.
- Moderate-Cost Areas: Cities such as Bangor and Brunswick are close to the national average, offering a balance of affordability and amenities.
- Low-Cost Areas: Rural communities like Lewiston, Waterville, and Presque Isle are 8–15% below the national average, with lower housing costs and everyday expenses.
Ensure Your New City Fits Your Wallet Check the cost of living in Maine and compare expenses across multiple cities in an instant.
Step 6: Start House Hunting in Maine
Once you’re pre-approved and know where you want to live, the next step is finding the right house. As a Maine first-time home buyer, you have two options:
- Work with a Realtor.
- Search for homes online.
An experienced agent can give you valuable local insights and expert guidance on neighborhood trends. However, you’ll have to negotiate the buyer agent commission with the seller, which may raise the home sale price.
If you prefer to take the lead, a high-tech platform like Houzeo is what you need. Whether you’re looking for beachfront mansions, high‑rise penthouses, spacious big homes, or luxury homes in Maine, Houzeo has you covered. You can browse through thousands of listings, set alerts, and save your search. You can even schedule showings and submit offers, all by yourself.
Don’t Just Browse. Buy.
Your entire home purchase, managed in one place.
Download the Houzeo Mobile AppStep 7: Schedule and Attend Home Showings
After you narrow down your list of potential homes, schedule and attend showings to see each property in person. For a Maine first-time home buyer, visiting homes firsthand helps you evaluate condition, layout, and neighborhood, ensuring you make an informed choice.
During the showing, ask specific questions like:
- How long has the home been on the market?
- Why is the owner selling?
- What is the age of the roof, HVAC system, and water heater?
- Are there any HOA fees or pending special assessments?
- Is the property located in a flood zone?
When buying a house in Maine for the first time, check the property carefully during the open house. Look for roof sagging, foundation cracks, water stains, uneven floors, or sticking doors, which may indicate serious issues.
As a Maine first time home buyer, there are three main aspects you need to focus on when shortlisting homes:
- Insurance Risks: Verify the home’s flood zone using FEMA’s maps. Get a 4-point inspection and a wind mitigation report to assess insurability and identify features, like an old roof or the lack of impact windows, that could drive up insurance costs.
- Commute and Lifestyle: Test your commute during rush hour. Visit the neighborhood at different times to check for noise from traffic, airports, or nightlife. Ensure convenient access to key amenities like schools, groceries, and parks.
- Maine Home Loans/Assistance Program Eligibility: If you’re applying for a loan or first time buyer program in Maine, ensure that the house complies with its property requirements, or you may risk losing the assistance.
Pro Tip If multiple major risks stack up like an older roof, suspect electrical, moisture indicators, or weak condo reserves, move the property down your shortlist.
Step 8: Make an Offer
When crafting an offer, make a competitive bid but stay within your budget. As a Maine first time home buyer, consider factors like the home’s market value, recent comparable sales, and any repairs needed. This increases your chances of getting a fair deal.
Step 1: Analyze Recent Sales
Your agent will pull up real estate comps that are similar to the one you want. Focus on the final sale price, not the list price. If home prices in many Maine metro areas have seen modest declines, your offer should reflect this trend.
Step 2: Adjust for the Home’s Condition
Factor in the age and condition of the roof and HVAC. If a comparable home sold for $505,200 but had a new roof, and your target home needs a $20,000 replacement, adjust your offer to account for that expense.
Step 3: Factor in Today’s Market
With more homes for sale, you have leverage. Even home builders are lowering their prices by almost 6% to attract buyers. So, for a home that is priced fairly, offer 3% to 5% less. If it is overpriced, you can justify an even lower offer, citing both the comps and market trends.
What is an Earnest Money Deposit in Maine?
An earnest money deposit is a “good-faith” payment that shows you are a serious buyer. This money is held in escrow and applied towards your down payment at closing.
In Maine, the standard deposit is 1% to 3% of the purchase price. On a $350,000 home, this would be between $3,500 and $10,500. In highly competitive markets like Portland or Cape Elizabeth, sellers may expect a deposit closer to 5%-10%.
Once your offer is accepted, you typically have 3 business days to submit the deposit to an escrow agent, such as a title company or real estate attorney.
Yes, you can get your earnest money deposit back in Maine, but only if you back out of the sale for the following reasons:
- The inspection reveals major issues, and you exercise the inspection contingency.
- The appraisal comes in low, and you exercise the appraisal contingency.
- You’re unable to secure the required financing, and exit during the financing contingency period
- Title issues are discovered.
Many ME first time home buyer forfeit their earnest money because:
- They back out after the contingency periods expire without a valid reason.
- They violate contract terms.
- The seller meets all contract obligations, but the buyer still refuses to close.
Step 9: Conduct Home Inspections
A Maine first-time home buyer should schedule home inspections to uncover any issues before buying a house. You typically get the inspection report within 24 to 48 hours.
Which Maine Home Inspections Should You Schedule?
A standard home inspection in Maine isn’t enough. The state’s unique climate and weather risks require a few specialized inspections:
- General Home Inspection ($300–$500): A licensed inspector will examine everything from the roof to the foundation. In Maine, they pay special attention to roof strength against snow loads, basement moisture, insulation quality, and heating systems such as oil or propane furnaces.
- 4-Point Inspection ($150–$250): Insurance companies may require a 4-point inspection for homes over 30 years old. It focuses on the four most critical systems: the roof, heating system, electrical system, and plumbing. An outdated furnace or an old electrical panel can result in insurance coverage being denied.
- Radon Inspection ($100–$200): Radon gas is common in Maine due to its granite bedrock. Testing is highly recommended, as radon exposure can pose serious health risks. Many lenders and buyers consider this inspection essential.
- Septic System Inspection ($150–$300): Rural homes in Maine often rely on septic systems. Inspectors check the tank, leach field, and overall functionality to ensure safe wastewater management.
- WDO / Pest Inspection ($75–$100): A termite inspection is mandatory for government-backed loans like FHA and VA, and highly recommended for all buyers. Maine’s colder climate reduces termite risk; however, carpenter ants and powderpost beetles are common threats.
Consider Other Specialized Inspections
Based on the property, a Maine first time home buyer may want to conduct additional tests. For older homes, a sewer scope can detect cracks or tree roots in the main sewer line, saving you from a $15,000 repair down the road. If you see large cracks or uneven floors, a $700 foundation inspection is worth the investment.
For rural properties, a septic inspection is essential. If the home has a pool, a separate pool inspection will check the pump, filter, and structure for costly defects.
It’s not recommended. Even if you plan to buy cheap homes in Maine, skipping a home inspection can lead to unexpected repair costs.
Step 10: Complete the Home Appraisal
After the inspection, your lender will typically order a home appraisal, which professionally values the property to ensure it matches your offer.
Why Do Lenders Need Appraisals?
A home appraisal in Maine confirms the property’s market value. Appraisers typically focus on the following parameters:
- Flood Zone and Elevation: A home in a high-risk flood zone (like Zone AE or VE) will likely be valued lower than a similar inland property due to higher insurance premiums.
- Insurance and Mitigation Features: The age of the roof, the presence of hurricane shutters, and impact-resistant windows directly affect a home’s insurability and, therefore, its market value.
- Condo/HOA Health: Appraisers closely examine a condo association’s financial health. They look for anything that may reduce the unit’s value, like the association’s reserve funds or any pending special assessments.
A standard appraisal in Maine costs between $75 and $600 and typically takes 7 to 10 days to complete. For luxury, coastal, or waterfront properties, the cost and timeline can be higher.
If the appraisal comes in lower than your offer price, you have an appraisal gap. In such a situation, you can either:
- Renegotiate the Price: Ask the seller to lower the price to the appraised value. In the current market, many sellers are willing to negotiate.
- Cover the Gap: If the seller won’t budge, you can choose to pay the difference in cash.
- Dispute the Appraisal: If you believe the appraiser made a factual error or used poor comparable sales, you can file for a Reconsideration of Value.
- Walk Away: If you cannot reach an agreement, your appraisal contingency allows you to cancel the contract and get your earnest money back.
Step 11: Negotiate Repairs and Credits
As a Maine first time home buyer, use your home inspection results to negotiate repairs and request credits from the seller. This step can help reduce unexpected costs and ensure your new house is move-in ready.
How to Use Your Inspection Report to Negotiate Repairs?
Your negotiation strategy should center on issues that impact the home’s safety, structural integrity, and insurability. Minor cosmetic flaws are not worth fighting over and can make you seem unreasonable. It’s easy to make this mistake when looking to buy a house in Maine.
Focus your request on these critical areas:
- Safety Hazards: This includes outdated and dangerous electrical panels, faulty wiring, or missing safety features like GFCI outlets near water.
- Structural Problems: Any issues with the foundation, load-bearing walls, or the roof structure.
- System Failures: A failing HVAC system, major plumbing leaks, or an old roof.
Get 2 to 3 written estimates from licensed contractors for any major repairs. A repair request that includes professional quotes shows you are serious and have done your homework.
Should You Ask for Repair Credit?
While you can ask the seller to perform the repairs themselves, it’s better to ask for credit instead. Credit gives you the funds to hire your own contractors and ensures the work is done to your standards, not just the cheapest way possible. It also allows the sale to proceed on schedule, without any delays.
How to Negotiate Seller Concessions
Seller concessions are a powerful tool for reducing your out-of-pocket closing costs when buying real estate in Maine. Here, the seller pays for some of your expenses, such as the appraisal, title insurance, or property taxes.
Your ability to negotiate concessions depends on your loan type. Each loan program sets a maximum limit on how much a seller can contribute:
| Loan Type | Minimum Down Payment | Maximum Seller Concession |
|---|---|---|
| Conventional | Less than 10% | 3% of the purchase price |
| Conventional | 10% or more | 6% of the purchase price |
| FHA Loan | Any amount | 6% of the purchase price |
| VA Loan | Any amount | 4% of the purchase price |
| USDA Loan | Any amount | 6% of the purchase price |
Step 12: Review Your Closing Costs
After negotiating repairs and credit as a first time home buyer in Maine, review all closing costs carefully. Check title fees, escrow, insurance, and taxes so you can finalize your budget and confidently buy a house in Maine.
Understanding Closing Costs in Maine
- Maine-Specific Taxes ($1,000+): Your closing costs will include the Real Estate Transfer Tax, which is split between buyer and seller. The rate is $2.20 per $500 of property value. On a $300,000 home, this tax adds $1,320 to the transaction.
- Title Fees ($1,500–$2,000): These fees cover the title search, settlement services, and title insurance policies for both you and your lender. In Maine, the buyer typically pays for the lender’s title insurance, while responsibility for paying the owner’s title insurance may vary depending on negotiation.
- Third-Party Fees ($1,000 to $1,500): This category includes the appraisal fee, credit report fee, and flood certification fee. It also covers any inspections you ordered, such as the general home inspection, radon test, septic system inspection, or pest inspection (carpenter ants, beetles).
- Prepaid and Escrow Costs ($3,000 to $6,000): You will pay for your first year of homeowners’ insurance upfront. You will also fund your escrow account with several months of property tax and insurance payments to cover future bills.
Step 13: Close on Your New Home
Closing day is the moment you officially become the owner of your new Maine home. Its success depends on a careful final walk-through, a smooth funding process, and making sure all legal documents are properly signed and recorded.
Complete Your Final Walk-Through
Within 24 hours of closing, you will do one last walk-through of the property. This is not a formal inspection, but rather your final chance to see if you want this home. Use this checklist:
- Verify Repairs: Bring your inspection report and repair addendum. Confirm that all negotiated repairs have been completed to a professional standard.
- Test Everything: Run the air conditioning and test all appliances. Make sure every system is functioning as it should.
- Check for Included Items: Ensure all items that were supposed to be included in the sale, like appliances, window treatments, and light fixtures, are still in place.
- Look for Signs of Additional Damage: Make sure no new damage has occurred since your last visit. If you see any issues, notify your agent and the title company immediately before you sign any documents.
Sign the Documents
While there are numerous documents to sign, the most important ones are:
- The Closing Disclosure: You will sign the final version of this document, which outlines all your loan terms and costs.
- The Promissory Note: This is your legal promise to repay the loan. The promissory note outlines the loan amount, interest rate, repayment schedule, and maturity date.
- The Mortgage: This document secures the property as collateral for your loan.
Once you have signed everything, you will provide your “cash to close” amount via a cashier’s check or wire transfer. After your lender sends their funds to the title company, the deal is officially funded.
Get Your Keys and Celebrate
Once the deal is funded, the title company will record the new deed with the county, officially transferring ownership to you. After they pay the seller and other parties, you will finally get the keys to your new home.
Congratulations, you are officially a Maine homeowner! 🎉
🚩 What are the Red Flags to Look for When Buying a House in Maine?
A new home is a huge financial investment. To ensure that you don’t sink your money into a dud, look out for these red flags:
1. Bargain-Priced Homes
An asking price that’s significantly lower than comparable homes in the area seems like a dream come true. But that’s just until the roof collapses or faulty electrical systems burn the house down.
An extremely low price could mean the property is uninsurable, or is located in a high-risk flood zone with steep insurance costs. So before you put in an offer, check the home’s sale history and other permits from the local county’s office. Also, get insurance quotes to understand your total expense better.
2. Neighborhood Sell-Out
During the open house, if you notice too many “For Sale” signs on a single street or in a small community, it should ring alarm bells. It could be due to skyrocketing HOA fees, declining school quality, or a recent increase in crime rates. It could also point to a future nuisance, like a commercial development planned nearby.
Talk to potential neighbors to get their opinion on the area. You can also check community social media pages or online forums like Nextdoor for discussions about local issues.
3. Excessive Use of Air Fresheners
A few scented candles create a welcoming atmosphere, but if a home smells like a lavender bubble burst in it, then there’s something fishy. It may be covering up a musty smell that highlights the presence of mold and plumbing issues.
Pay close attention to the smell in the closets, bathrooms, and around the air conditioning unit. Open kitchen and bathroom cabinets and smell the area under the sink. If you detect a musty odor, ask for a separate mold inspection along with the standard home inspection.
4. Sloping or Uneven Floors
Floors that are noticeably slanted or feel bouncy can indicate foundation problems. Given Maine’s shifting soil and frost heave, soil settlement can cause the foundation to shift over time. Minor settling may be acceptable in older homes, but significant slopes signal a major structural issue.
Bring a marble or a golf ball with you to showings and place it on the floor in different rooms to see if it rolls. Also, look for other signs of foundation issues, like large cracks in the basement walls, gaps above door frames, or sticking windows and doors.
5. Condensation in Windows
Fog trapped between the panes of double-glazed windows is a sign that the seal has failed. When the seal breaks, the insulating argon gas leaks out and is replaced by moisture-filled air. This compromises the window’s energy efficiency and leads to higher heating costs in Maine’s hot climate.
Inspect each window and pay special attention to those exposed to extreme temperature changes, as seals can fail faster. If you see failed seals, get a quote for window replacement to use as a negotiating point.
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Property Tax Exemption: If the house is your primary residence, apply for Maine’s Homestead Exemption to reduce your property taxes. This exemption provides up to $25,000 off your home’s assessed value, which is especially valuable in higher-tax areas like Portland and Cape Elizabeth.
- Set Up Utilities: Get the water, electric, internet, and trash services connected. In Maine, don’t forget to arrange heating fuel delivery (oil, propane, or natural gas) and consider pest control for carpenter ants or beetles, which are common in wooded areas.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA zones, especially along the coast or river valleys. Rates are higher in coastal towns like Bar Harbor and Rockland due to storm surge and flood risk.
- Home Maintenance Plan: Schedule furnace or boiler tune-ups annually, clear gutters regularly to prevent ice dams, and inspect roofs for snow load damage or leaks. Consider energy efficiency upgrades, such as improved insulation or heat pumps, to reduce heating costs and qualify for rebates.
How to Buy a House in Maine Without a Realtor?
Research neighborhoods and browse listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Which First Time Home Buyer Programs in Maine Can You Apply For?
Various programs make homeownership accessible for a Maine first time home buyer. They assist with down payments through grants or low-interest, deferred-payment loans. Applicants must meet the income and credit score criteria and complete a homebuyer education course to avail of these programs.
| Program Name | Eligibility | Grants | Key Benefit |
|---|---|---|---|
| MaineHousing First Home Loan Program | First-time buyers or those who haven’t owned a home in 3 years; income and purchase price limits apply | Option for little/no down payment; Advantage Grant up to $5,000 for closing costs | Low fixed interest rates; includes mortgage insurance; works with approved lenders |
| MaineHousing Advantage Grant | Must use MaineHousing First Home Loan; meet income limits | Up to $5,000 toward down payment and closing costs | Non-repayable grant; reduces upfront expenses significantly |
| MaineHousing Salute ME Program | Active duty military, veterans, and retired military | Down payment and closing cost assistance; reduced interest rates | Honors military service; makes homeownership more affordable for veterans |
| MaineHousing Mobile Home Self-Insured Program | Buyers of mobile/manufactured homes on owned land | Financing with lower down payment requirements | Expands access to affordable housing options in rural Maine |
| MaineHousing Multi-Unit Purchase Program | Buyers of 2–4 unit properties who will occupy one unit | Down payment and closing cost assistance | Allows buyers to build equity while generating rental income |
1. MaineHousing First Home Loan Program
- Eligible Buyers: First-time homebuyers or those who haven’t owned a home in the past 3 years; income and purchase price limits apply.
- Credit Score: Minimum 640.
- Assistance: Access to 30-year, fixed-rate mortgages with little or no down payment.
The MaineHousing First Home Loan Program is the primary mortgage option offered by the Maine State Housing Authority. It connects first-time buyers with affordable fixed-rate mortgages and includes built-in mortgage insurance. To qualify, buyers must meet income and purchase price limits and complete a homebuyer education course.
2. MaineHousing Advantage Grant
- Eligible Buyers: Buyers using the MaineHousing First Home Loan Program who meet income limits.
- Credit Score: Minimum 640.
- Assistance: Up to $5,000 toward down payment and closing costs.
The MaineHousing Advantage Grant provides non-repayable assistance to reduce upfront expenses. It is designed to help first-time buyers bridge the gap for closing costs and down payments, making homeownership more accessible.
3. MaineHousing Salute ME Program
- Eligible Buyers: Active duty military, veterans, and retired military personnel.
- Credit Score: Minimum 640.
- Assistance: Reduced interest rates and down payment/closing cost assistance.
The Salute ME Program honors military service by offering affordable financing options. Eligible buyers benefit from lower interest rates and assistance with upfront costs, making homeownership more affordable for Maine’s military families.
4. MaineHousing Mobile Home Self-Insured Program
- Eligible Buyers: Buyers of mobile or manufactured homes located on owned land.
- Credit Score: Minimum 640.
- Assistance: Financing with lower down payment requirements.
This program expands access to affordable housing by providing financing for mobile and manufactured homes. It helps rural Maine buyers secure stable housing options with reduced upfront costs.
5. MaineHousing Multi-Unit Purchase Program
- Eligible Buyers: Buyers of 2–4 unit properties who will occupy one unit.
- Credit Score: Minimum 640.
- Assistance: Down payment and closing cost assistance.
The Multi-Unit Purchase Program allows buyers to purchase small multi-family properties while living in one unit. This option helps buyers build equity and offset mortgage payments with rental income, making ownership more sustainable.
» First Time Buyer Programs: Find the perfect program that helps you get the key to your first home.
What Should You Know Before Buying a House in Maine?
Before you buy a home in the Pine Tree State, you must understand the factors that can impact your budget and lifestyle.
What are Some Additional Costs When Buying Houses in Maine?
Apart from the purchase price, you must account for several other expenses, like property taxes and potential HOA fees. However, the most critical consideration for any Maine homebuyer is insurance.
- Why Homeowners Insurance is Crucial: Maine’s susceptibility to winter storms, flooding, and ice damage makes homeowners’ insurance essential. This coverage protects your investment from risks such as frozen pipes, roof collapse from snow loads, and coastal flooding.
- High Insurance Costs: Due to these risks, the projected annual cost of homeowners’ insurance may go as high as $2000!
- Choosing the Right Policy: When selecting a policy, ensure it provides adequate coverage for snow and ice damage, flooding, and liability. You could lower your premium by choosing a home with a newer roof, updated heating systems, and strong insulation. Energy-efficient upgrades like heat pumps may also qualify for rebates and reduce long-term costs.
Do You Need Separate Flood Insurance in Maine?
Yes, you do. Standard homeowners’ insurance does not cover flood damage, so a separate policy is necessary for protection. FEMA maps determine your property’s flood risk:
| Flood Zone | Risk Level | Insurance Recommendation |
|---|---|---|
| A, AE, V, VE | High-Risk | Mandatory for most mortgages. These areas have at least a 1% chance of flooding annually. |
| B, C, X | Low-to-Moderate | Highly Recommended. Roughly 25% of all flood claims happen in these “lower-risk” areas. |
When is Flood Insurance Required?
Whether you need flood insurance typically depends on your property’s location, your mortgage lender, and your homeowners’ insurance provider. However, there are two main situations where flood insurance is mandatory in Maine:
- Federally-Backed Mortgages in High-Risk Zones: If your home is in a high-risk flood zone and you have a federally-backed mortgage, federal law requires you to have flood insurance.
- Lender or Insurance Requirements: Even outside of high-risk zones, many lenders and insurance companies in Maine may require flood insurance if the property shows signs of coastal exposure, river proximity, or past flood history. This ensures the home remains insurable and protects both the buyer and lender from financial risk.
Pro Tip Flood maps change over time. You can check your property’s official flood zone using the FEMA Flood Map Service Center.
Why First-Time Homebuyers Should Explore Maine Now?
Maine is a smart choice for first-time buyers, thanks to its Homestead Exemption program and a market that offers both affordability and lifestyle variety. From Portland’s growing job market to the coastal charm of Bar Harbor, there’s a community in Maine for every budget.
With thousands of homes for sale and numerous down payment assistance programs, homeownership is more attainable than ever.
» Houzeo Reviews: Read what customers have to say about Houzeo, Maine’s best home buying website.
